Theragenics Corporation TGX, a medical device company serving the
surgical products and prostate cancer treatment markets, today announced that
it has entered into a Second Amended and Restated Credit Agreement with Wells
Fargo Bank, National Association. The new three year credit agreement, which
is unsecured, replaces the $30 million credit agreement with Wells Fargo that
was set to expire on October 31, 2012. Borrowings of $22 million that were
outstanding under the old credit agreement have been refinanced under the new
$40 million credit agreement. The interest rate on outstanding borrowings
under the new credit agreement has been reduced from LIBOR plus 2.25% to LIBOR
plus 1.75%. The financial covenants in the new credit agreement are
substantially similar to the previous credit agreement.
“Obtaining our new credit agreement is a significant accomplishment,” stated
M. Christine Jacobs, Chairman and Chief Executive Officer of Theragenics. “We
believe that the increase in the available credit and the lower interest rate,
in the current credit environment, is attributable to our strategy, our focus
on cash flows and the strength of our balance sheet. With this new credit
agreement in place we can continue to focus on our strategy of growth and
diversification.”
Under the new amended and restated credit agreement, the $40 million revolving
line of credit matures on October 10, 2015, with interest payable at LIBOR
plus 1.75%. $22 million in revolving loans are currently outstanding under
this revolving line of credit. The new credit agreement is unsecured but
provides for a lien to be established on substantially all assets of the
Company if certain events of default occur. Provisions of the new credit
facility require the Company to maintain a minimum cash and investment
balance, as defined in the agreement, of $10 million. The terms also require
the maintenance of certain minimum financial covenants, including a minimum
fixed charge coverage ratio and a maximum debt to tangible net worth.
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